Gold & Tax

Are Sovereigns CGT Free?

Yes. The gold Sovereign is UK legal tender, which makes it exempt from Capital Gains Tax for UK residents.

Last reviewed September 2026

Why the Sovereign qualifies

The Sovereign has been struck by The Royal Mint since 1817 and carries a face value of one pound. Because it is legal tender, the tax rules treat it as currency rather than as an investment asset, and currency in sterling is outside the scope of Capital Gains Tax. Sell your Sovereigns at any profit and the gain is simply not taxable.

Does this cover older Sovereigns?

Post-1837 Sovereigns are accepted as legal tender and enjoy the exemption. This includes the Victorian, Edwardian and George V coins that make up much of the market, as well as modern issues. It is one reason the Sovereign remains the classic entry point for UK gold owners: a small, world-recognised coin with a tax advantage built in.

Sovereign or Britannia?

Both are CGT free and VAT free. The Sovereign is smaller, which makes it flexible to buy and sell in stages, while the one ounce Britannia carries a lower premium per gram of gold. Many clients hold both. We compare them properly in Britannia vs Sovereign.

Read more: Is gold CGT free? · Is gold VAT free?

This page is general information, not tax, legal or financial advice. Tax treatment depends on your individual circumstances and tax rules can change. Please speak to a qualified adviser about your own position. The value of gold can go down as well as up.